The best part is, once you consider the return on investment, as well as the intangible improvements to morale thanks to automation and accessibility, management typically wants to implement a system as soon as possible. And that’s nice since it will save you time and headaches while making your company more profitable and accountable.
Step 1: Show the ROI
To make the case to management, we recommend first calculating the return on investment for a new system based on your specific company size and needs.An automatic ROI calculator is available for free here. It shows you where you’ll gain efficiencies and achieve savings.
The beauty is that most companies will achieve a return on investment within months. These systems are really no-brainers once you show management how you’ll introduce automation, reduce errors, and improve overall profitability and efficiency.
Step 2: Let Value Speak for Itself Simply by Defining System Requirements
Planning a new system - even for small and mid-sized companies - can sometimes take months and an entire team, depending on requirements and goals for automation.With the right information, though, even the most complex implementations can be managed confidently by your team.
Simple problems are typically fixed with simple systems that you can get very affordably. The more processes you automate, the better the ROI – but the cost will increase substantially when you automate processes that are specific to your business.
You’ll have to consider:
• Scope of System
• Mobile Employees
• Locations
• Hardware
You’ll also have to consider additional functionality:
• Support for Larger Company Sizes
• Support for More Administrators or Supervisors to Use System
• Benefit Accruals
• Advanced Payment Capability
• Overtime
• Shift Differentials
• Pay Classes
• Task & Labor Tracking
• Cost of Labor
• Skills & Certifications
• Points / Demerits
• Automated Alerts
• Time-Off Management
• Employee Communication
• Email Templates
• Mobile Support
Lastly, you’ll need to discuss whether or not you’d like to include additional software with your system to synchronize systems and eliminate adding employees over and over again into separate systems. You can include:
• Scheduling
• Employee Self-Service Portals
• Access Control
• Bell or Horn Control (Signal Start / End of Shift or Breaks)
• Job Tracking
• Manufacturing Automation
• Inventory Control
Once you’ve defined what you want to include in your new system, its value will become instantly clear. All of those manual processes you’ve listed will be automated. Accountability will be ensured. And management won’t be able to wait to get the system integrated.
For more information about how to define the requirements for your system, view a free white paper here.
Step 3: Show the Low Impact of Costs
Two options are available when choosing your software model: the traditional licensed software delivery model and web-based software as a service (SaaS). It's important to learn when payments are due for obvious budgeting (and cash flow) purposes.Purchasing licensed software is a one-time expense that allows you to run the software on your internal systems. With a licensed system, the payment schedule will vary by vendor. Some require an up-front payment with the remainder due following implementation. Others may require 100% up-front.
Software as a Service involves signing up for a service through a software provider. SaaS providers will charge a recurring fee, but this will be in return for widely available system that is much easier to implement. Sometimes SaaS can be easier to obtain management approval for because the costs are incurred monthly and the initial fees are much smaller.
If a large payment (or two relatively large payments) isn't palatable for your unique business situation, the lower monthly payments associated with SaaS delivery may be preferred.
Learn more about licensed vs. SaaS HR systems.
Step 4: Advocate Compliance
Meeting regulatory compliance regulations is vital to mitigate litigation risks for your company. Just one lawsuit would justify the cost of a new system many times over.Nearly any software you purchase will help you comply with applicable regulations, but it is important to check before buying if your industry is strictly regulated.
• Learn more about regulatory compliance as it pertains to time and attendance.
• Learn more about time and attendance recordkeeping requirements.
• Learn about tip tracking requirements for tipped employees.
Final Thoughts
Getting management approval for a new HR system can seem like a daunting ordeal when you first start the research process. It’s hard to know what you need, what’s available, or what’s realistic – so how can you get management approval for the project?We hope this white paper has made the process seem a lot easier by providing you with industry insider hints and best practices that have helped you understand the benefits of HR systems.
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Acumen Data Systems is a leading provider of employee time and attendance systems and software, as well as other workforce management and business automation software.Acumen's ViewSUITE is a cost effective, robust set of businesses applications, including systems and software for employee time and attendance, labor management, employee scheduling, HR management, facility access control, job tracking, job costing, and shop floor data collection.
Contact Acumen today at 888-816-0933 to learn more about its HR Management software and services.
